Form 12153: How to Request a CDP or Equivalent Hearing With the IRS
The IRS may take collection actions against your assets or properties when you have unpaid tax liabilities. Before you panic, you must recognize that as a taxpayer, you also have certain rights to challenge these actions. Among these is your right to request a Collection Due Process (CDP) hearing, which you can make by filing Form 12153.
In this guide, we’ll walk you through when and how to use Form 12153 to request a CPD hearing and what to expect during the process.
What Is a Collection Due Process Hearing?
A CPD hearing gives you the opportunity to challenge certain IRS collection actions, such as a tax levy or a lien, before they happen. It also gives you the chance to propose another way to resolve your tax debt.
The hearing takes place with the IRS Office of Appeals, where an independent settlement officer who has no previous involvement in your case conducts the hearing.
During the hearing, the officer may look at two things:
- First, they review whether the IRS followed proper procedures.
- Second, they assess whether the proposed collection action balances the government’s need to collect taxes with your financial situation.
The hearing itself is usually informal. Sometimes, it happens over the phone or through written correspondence rather than in a courtroom. It may also occur via video conference.
What Is Form 12153?
You use Form 12153 to request a Collection Due Process hearing or an Equivalent Hearing.
You usually file after receiving a notice that the IRS plans to begin collection activity. The most common ones include a Final Notice of Intent to Levy or Notice of Federal Tax Lien.
The letters should contain details about your tax debt (the amount owed, penalties, and interest, and the tax periods), the proposed enforcement action by the IRS, and instructions about your right to request a hearing.
Filing Form 12153 will pause the IRS’s aggressive collection activity and give you a chance to present your case to the appeal officer and raise any issues during the hearing.
Issues You Can Raise During a CDP Hearing
When you file Form 12153, you may raise several types of issues during your hearing. For example, you may:
- Question the collection action if you believe the IRS levy or lien is unnecessary or overly harsh given your situation.
- Challenge the underlying tax liability if you did not previously receive a notice of deficiency or another opportunity to dispute the tax.
- Point out errors or procedural issues in the IRS collection process
- Request a collection alternative, such as setting up an installment agreement, applying for an Offer in Compromise, or placing your account in Currently Not Collectible
- Raise a spousal defense if the tax liability relates to a joint tax return
- Request penalty or interest relief
- Challenge the decision made by a revenue officer, especially if your proposed repayment plan was denied.
When You Cannot Challenge the Tax Liability
The appeal officer may not always allow you to dispute the amount of your tax liability. It usually happens when:
- You previously received a statutory notice of deficiency, or
- You already had an opportunity to dispute the tax in court.
In those cases, the hearing will focus on collection alternatives rather than the recalculation of your taxes.
Deadline to Submit Form 12153
You have 30 days from the date of the notice to submit Form 12153 and request a full Collection Due Process hearing. Filing within this deadline also preserves your ability to contest the Appeals decision in the U.S. Tax Court if necessary.
If you miss the deadline, you may still request an Equivalent Hearing. The process of the hearing is similar to that of the Collection Due Process. The difference, however, is that it won’t pause the collection action and you can’t challenge the appeals decision in the Tax Court in case of disagreement.
How to Complete Form 12153
The form itself is short and easy to complete.
- Start with your basic information. Enter your name, address, and Social Security number or employer identification number. If a tax professional represents you, you can list that person as well.
- Next, identify the IRS notice that triggered your appeal rights. You’ll need the notice number, the date of the letter, and the tax periods involved.
- Explain why you disagree with the IRS action. This section is the most important part of the form. Clearly describe why you believe the collection action should be reconsidered and what alternative you would like the IRS to consider, such as a payment plan, hardship status, or another collection option.
- Finally, sign the form. Review the form carefully, sign it, and keep a copy for your records before sending it to the IRS.
Where to Mail Form 12153
After you complete the form, submit it to the mailing address listed on the IRS notice that explains your appeal rights. It usually includes a mailing address specifically designated for CDP requests.
We recommend sending the form by certified mail with a return receipt so you’ll have proof the IRS received the request within the required deadline.
What Happens After You Submit Form 12153?
Once the IRS receives your Form 12153, it forwards your case to the IRS Independent Office of Appeals.
An appeals officer will then review the file and may contact you to schedule the hearing.
Possible Outcomes of a CDP Hearing
At the end of the process, the appeals officer will issue a determination.
Several outcomes are possible. The IRS may approve a payment plan, accept a settlement offer, or agree to withdraw the proposed levy. In other cases, the IRS may decide to continue collection activity.
If you requested a full Collection Due Process hearing, you still have one more option. You can challenge the decision in the U.S. Tax Court.
When Do You Need Professional Help
Submitting the Form 12153 may be easy, but the strategy behind the request often determines the outcome of the hearing.
A well-prepared appeal may stop a levy and open the door to a manageable resolution. A weak or poorly supported explanation of the case, on the other hand, may result in an unfavorable determination and limit your options later.
If your tax situation involves a large balance, business taxes, or multiple IRS notices, we highly recommend working with a professional to handle your case.
Frequently Asked Questions
Form 12153 is used to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals. You typically file it after receiving a notice about a tax lien or a planned levy. The hearing allows you to challenge the collection action or propose another way to resolve the tax debt.
You must submit Form 12153 within 30 days of the date listed on the IRS notice. Meeting this deadline protects your right to challenge the determination in tax court. If you file later than that, the IRS may still review your case through an Equivalent Hearing.
An Equivalent Hearing is a review by the IRS Office of Appeals when you miss the 30-day deadline for a CDP hearing. You may still request it within one year of the notice date. However, the decision from an Equivalent Hearing cannot be appealed to the U.S. Tax Court.
Once the hearing concludes, the appeals officer evaluates the information presented and sends a written decision. That determination explains whether the IRS will proceed with collection or allow another resolution, such as a payment arrangement. The letter also outlines any next steps available to the taxpayer.
If you requested a full Collection Due Process hearing, you may challenge the decision in the U.S. Tax Court. You must usually file your petition within 30 days of the Appeals determination letter. This option is not available if your case was handled as an Equivalent Hearing.
Get Professional Help With Collection Due Process Hearing
If you recently received a notice from the IRS about a federal tax lien or levy and want to request a CDP hearing through Form 12153, contact Tax Samaritan today for a free 30-minute consultation. Our team will assess your case and guide you toward the most effective path forward, whether through a CDP hearing or another resolution option.
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Every effort has been made to provide accurate and current tax information. This article is not a substitute for professional tax advice based on your individual circumstances. Tax law changes frequently. Please consult a qualified tax professional before making decisions based on this content.
